Sheahan, in the matter of BCI Finances Pty Ltd (in liq) [2015] FCA 121

Sheahan, in the matter of BCI Finances Pty Ltd (in liq) [2015] FCA 121

Approval was granted because s 477(2B) applied, the proposed deed was a deed of indemnity rather than a litigation funding agreement conferring a premium on the funder, the Deputy Commissioner of Taxation was the only creditor to have lodged a proof of debt, there was no evidence of lack of good faith, error of law or principle, substantial reason to doubt the prudence of the liquidators' proposed conduct, prejudice to other creditors, or oppression, and the liquidators may not be able to pursue the Recovery Action without the Deputy Commissioner's assistance.

Jurisdiction
Australia
Judgment Date
18 February 2015
Procedural Posture
Application Under S 477(2 B) of the Corporations Act 2001 (cth) for Approval to Enter Into a Deed of Indemnity / Ex Tempore Reasons for Judgment and Order Granting Approval
Outcome
Application granted.
Legal Topics
["liquidators' Powers" 'approval Under S 477(2 B)' 'litigation Funding' 'deed of Indemnity' 'recovery Action']
['corporations' 'insolvency' 'winding Up'] ["liquidators' Powers" 'approval Under S 477(2 B)' 'litigation Funding' 'deed of Indemnity' 'recovery Action']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 1 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Application Under S 477(2 B) of the Corporations Act 2001 (cth) for Approval to Enter Into a Deed of Indemnity / Ex Tempore Reasons for Judgment and Order Granting Approval

Legal Issues

  1. 1 ['Whether approval should be granted under s 477(2B) of the Corporations Act 2001 (Cth) for the liquidators to enter into a deed of indemnity with the Deputy Commissioner of Taxation.' "Whether the proposed deed was an appropriate exercise of the liquidators' commercial judgment in the interests of BCI Finances Pty Ltd (in liquidation) and its creditors."]

Ratio Decidendi

Approval was granted because s 477(2B) applied, the proposed deed was a deed of indemnity rather than a litigation funding agreement conferring a premium on the funder, the Deputy Commissioner of Taxation was the only creditor to have lodged a proof of debt, there was no evidence of lack of good faith, error of law or principle, substantial reason to doubt the prudence of the liquidators' proposed conduct, prejudice to other creditors, or oppression, and the liquidators may not be able to pursue the Recovery Action without the Deputy Commissioner's assistance.

Court Disposition

Application granted.

Orders

  • ['Approval be granted to the Applicants, pursuant to s 477(2B) of the Corporations Act 2001, to enter into the deed of indemnity in the form of annexure "IRL4" to the affidavit of Ian Russell Lock affirmed 5 February 2015.']